Hedonic regression models

Abstract

This provides a basic overview of the nature and variety of hedonic empirical pricing models that are employed in the economics literature. It explores the history of hedonic modeling and summarizes the field′s utility-theory-based, microeconomic foundations. It also provides a discussion of and potential solutions for common problems associated with hedonic modeling. This paper examines three specific, different hedonic specifications, the linear, semilog, and Box-Cox transformed hedonic models, and applies them to real estate data. It also discusses recent innovations related to hedonic models and how these models are being used in contemporary studies.